About 800,000 Aussies are with dud super funds and receiving “significantly poor” investment returns, according to new data.
The best and worst-performing super funds of 2022 have been named as part of the Australian Prudential Regulation Authority’s (APRA) annual MySuper Heatmap.
Energy Industries Superannuation Scheme was named the worst-performing super fund for the 2022 financial year, with its Balanced MySuper product underperforming its annual net return benchmark by 1.49 per cent.
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The best-performing fund was UniSuper, whose Balanced product outperformed its annual net return benchmark by 1.56 per cent.
APRA deputy chair Margaret Cole said the heatmap had helped wipe out poor-performing products and reduce costs.
“Since its introduction, we have seen costs to members reduced, many underperforming products closed, and a drop in the number of members in funds with significantly poor investment performance,” Cole said.
“However, there are still hundreds of thousands of members in funds with sub-par investment performance, and the industry has serious sustainability issues to address.”
Since last year’s heatmap was published, APRA estimated 8.1 million members had experienced a drop in their disclosed total fees and costs. A saving of around $210 million annually.
While 350,000 members had left super funds with “significantly poor” investment performance, around 800,000 members remained in these underperforming products.
Best and worst super funds in 2022
The top-performing super funds were:
Unisuper - Unisuper Balanced: 1.56 per cent
Meat Industry Employees Superannuation Fund - MIESF MySuper: 1.54 per cent
Goldman Sachs & JBWere Superannuation Fund - Goldman Sachs & JBWere Superannuation Fund MySuper Product: 1.38 per cent
HOSTPLUS Superannuation Fund - Balanced option: 1.32 per cent
AMP Super Fund - Macquarie Group MySuper: 1.22 per cent
The worst-performing super funds were:
Energy Industries Superannuation Scheme - Pool A - Balanced (MySuper): -1.49 per cent
Retirement Wrap - BT Super MySuper: -1.02 per cent
Australian Catholic Superannuation and Retirement Fund - LifetimeOne: -0.79 per cent
Retirement Wrap - Westpac Group Plan MySuper: -0.73 per cent
AMG Super - AMG MySuper: -0.67 per cent
This is based on an annual performance test as of June 30, 2022.